basic legal principles of gatt/wto
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Basic legal principles:
Tariff bindings / specific commitments on services
Most-favoured-nation (MFN) treatment
National treatment
Prohibition on trade restrictions
Content
Rights of Members:
Waivers
General exceptions
Safeguards
Antidumping / Countervailing measures
Regional Trade Agreements
Marrakech Agreement establishing the World
Trade Organization
Signed in Marrakech on 15 April 1994
Ratified following national procedures
Entered into force on 1st January 1995 (legally binding international instrument engaging the responsibility of States)
Marrakech Agreement establishing the World
Trade Organization
WTO: An international agreement
WTO: Trade Rules and Disciplines
1AMultilateral
agreements on trade in goods
1BGATS
1CTRIPS
2Dispute
Settlement Understanding
3Trade Policy
Review Mecanism
4Plurilateral
trade agreements
WTO Agreement
Marrakech Agreement Establishing the WTO
WTO
Understandings
Agreements on:Agriculture
Sanitary and phytosanitary measures
Safeguards
Technical barriers to trade
Trade-related investment measures (TRIMS)
Antidumping
Customs valuation
Preshipment inspection
Rules of origin
Import licensing
Subsidies and countervailing measures
Marrakech Protocol
GATT 1994 (General Agreement on Tariffs and Trade)
WTO: Trade Rules and Disciplines
1AMultilateral
trade agreement on trade in goods
Annex 1A
Multilateral agreements on trade in Goods
Goods
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• Each Member commits to ensure an agreed level of access to its market for supplying countries, on a non-discriminatory basis
Article II, GATT
Article XVI, GATS
Binding / Commitments
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• In goods, the use of trade restrictions (such as quotas) is prohibited
• In services, the use of quotas is prohibited for sectors and modes of supply covered in the Member’s Schedule of Specific Commitments
Article XI, GATT
Article XVI, GATS
Prohibition of Trade Restrictions
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• No discrimination between like products / services originating in or destined for different countries (or nationals of different countries with regard to the protection of IP)
• Each Member gets immediately and unconditionally the best treatment given to any other trading partner
Article I, GATTArticle II, GATSArticle 4, TRIPS
Most Favoured Nation (MFN)
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• Properties, nature and quality
• End use, substitutability
• Consumers’ perceptions
• Tariff classification
“Like” products
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• Foreign goods, services and service providers, as well as IPR holders, must not be discriminated against vis-à-vis domestic goods, services, and services providers, as well as IPR holders
• In services, national treatment depends on the Member’s Schedule of Specific Commitments)
Article III, GATTArticle XVII, GATS
Article 3, TRIPS
National Treatment
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In exceptional circumstances, Members can temporarily waive an obligation imposed on a Member by the WTO rules
Article IX.3-4Marrakech Agreement
Exceptions: Waivers
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• In specific situations and under certain conditions, WTO rules and obligations do not prevent Members from taking some measures which otherwise would be illegal
• Such measures must not discriminate, nor constitute "disguised barriers to trade“
Article XX, GATTArticle XIV, GATS
General exceptions
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WTO rules and obligations do not prevent Members from taking certain measures -otherwise contrary to certain basic principles-, to enter with other countries into some forms of economic integration compatible with the WTO "regional agreement" provisions
Article XXIV, GATT1979 Enabling Clause
Article V, GATS
Regional integration
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In specific situations, measures -otherwise contrary to certain basic principles- are available to Members to protect, conditionally and temporarily, their domestic industry against surge of imports
Article XIX, GATT
Safeguard measures
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Members may adopt measures to compensate for distortions created by certain trade practices
Article VI, GATT
Anti-dumping measures
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• Subsidies may distort trade / Some subsidies are prohibited
• Other subsidies are permitted, but actions can be taken against any adverse effects
• Actions are either in the form of "direct actions" (Dispute Settlement) or "Additional duties" at the border (Countervailing duties)
Articles VI and XVI, GATT
Subsidies and countervailing measures
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• Publication of trade regulations (Laws, Regulations, judicial decisions and administrative rulings of general application)
• Notification requirements
• Uniform, impartial and reasonable administration
• Independent legal review
• Trade policy review mechanism
Article X, GATTArticle III, GATS
Transparency andAdministration of trade measures
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To preserve the rights and obligations of Members under the covered agreements, and to clarify the existing provisions of those agreements in accordance with customary rules of interpretation of public international law
Article 3.2, DSU
Functions of the WTO dispute settlement system
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To secure a positive solution to disputes
Through a mutually agreed solution, if possible...
...If not, recourse to panel process
[...Or, alternative modes of dispute resolution]
Article 3.7, DSU
Object of the WTO dispute settlement system
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• An "integrated mechanism" with a common set of rules
• "Members only" / Only "measures" may be challenged
• Panel and Appellate Body reports are adopted by the DSB
• Rules of Conduct for participants
WTO dispute settlement